|
Home |
Software Providers |
Consultants |
Articles |
Columns |
Reviews |
Headlines
|
|
|
- |
| - |
|
- |
Entire contents Copyright © 1999 Business Insurance "Catching up with technology; Risk management systems advice
for RIMS attendees"
|
|
WITH THE ANNUAL RIMS conference upon us, many of us doubtlessly are rushing to tend to last minute details. In the midst of this frenzy, I thought I would write a brief guide for those planning to check up on the latest systems, gadgets, functional trends and which vendors are doing what. I have included a discussion about general market trends in risk management technology and some tips for first time visitors to the exhibition hall. What to expect Vendor Profile: Not much new here to report. The cadre of vendors remains quite stable, as befits the mature marketplace. Besides the major, full service vendors offering claims, insurance and risk management applications, there are a host of specialty firms as well. Most offer some sort of medical or case management service. Others provide specialty insurance software, such as for certificates of insurance management or experience modification factor computations. Differentiating among vendors is becoming more difficult because a former method of classifying vendors, hardware platform, virtually has disappeared. Both of the major ``unbundled'' vendors, Corporate Systems Ltd. and Risk Sciences Group Inc., slowly are moving off of their mainframe/timeshare system and toward the distributed, client/server platform. Bundled vs. unbundled is still a good descriptor, though. Most insurer and TPA-based systems still are bundling their system with other services. However, I am aware of several that are seriously rethinking this strategy. The area of functionality-i.e., what does the system actually do?-is probably the best method of comparing vendors. Major functional areas include claims monitoring; full claims administration, along with breaking this down to the specific coverage included; exposure analysis; insurance administration, including certificates, premium allocation and policy register; safety and OSHA compliance; and risk financing analysis. Technology is also important and deserves its own discussion. Technological advancement is both a blessing and a curse for the RMIS user. As fast as one technology is developed and purchased, it can become obsolete within months. Therefore, it is incumbent upon any RMIS purchaser to ensure that its technology and system architecture is both standard and flexible to adapt to changing needs. Some of the more important elements of technology available for the RMIS manager now and in the immediate future are: Client/server architecture. This is the preferred computing architecture of the 1990s and into the 21st Century. Quite simply, it elevates the interconnectability of computers in a network to the level of seamless, or near seamless, access by users to a variety of software available in the RMIS and other internal corporate systems. Artificial intelligence/expert systems. Although these have been around for a few years, they now are being used with increasing frequency in the risk and insurance arenas. Claims reserves, for example, can be estimated and predicted based upon initial and ongoing investigative data fed into the large ``knowledge database'' of the AI system. CARE Systems Corp. and Risk Data Corp. offer varieties of these systems. Another common usage is in the medical management arena. Systems such as Boston-based Health Payment Review Inc.'s "Patterns of Treatment'' go far beyond simple medical bill audits; rather, they compare the treatment pattern of a patient with a specific injury and compare it against the pattern of a claimant with a similar injury. Variances are noted and a medical expert usually is brought into the picture for specific comment on the treatment methods. Imaging/scanning. Increasingly, the scanning of documents (i.e., document management) directly into the computer for long-term data retention and paperwork reduction is being sought by risk managers. Claims data, certificates of insurance, underwriting submissions (especially those for directors and officers insurance) and key contracts can be scanned directly into the RMIS for later retrieval and analysis. Although most scanning/imaging today involves whole documents (or picture-taking), optical character recognition technology also is improving. OCR not only scans, but actually inputs data off the forms for immediate analysis. Error rates on OCR are currently too high for most customers and the technology is still expensive. Access to Internet, WorldWide Web and electronic bulletin boards. This is truly an exciting innovation. Increasingly, a vast reservoir of knowledge can be accessed by inquisitive risk managers through their systems from the large Internet-a large and labyrinthine maze of interconnecting systems and electronic bulletin boards-via interfaces such as the WorldWide Web. Through it, one can access other risk managers, university libraries, online news services and other resources to provide vital information on risk management and related topics. It is also an excellent communication device as risk managers can send E-mails to colleagues and business associates across the world, join in chat groups on industry related bulletin boards (such as RIMSNET, RiskNet and M200 Online). For example, M200 Online, which started up in January 1995, is a communication tool and information resource for professionals in risk assessment, control and finance. It supports conferencing, electronic mail, file transfers, libraries, databases and real-time interaction. RIMSNET is an older bulletin board, yet an excellent communications device linking risk managers electronically. RiskNet, designed and maintained at the University of Texas in Austin, is more academically oriented in the fields of risk management and insurance. Market trends One myth I have heard about these conferences is that one can look at the gadgetry and marketing propaganda displayed at RIMS to get an understanding of market direction. As I reflect upon past RIMS conferences, I do not think that the ``cutting edge'' of the true marketplace is displayed. Rather, the vendors are reacting to last year's issues and providing technological responses. To wit, last year's conference in New Orleans still had workers compensation as a predominant theme, but it was already evident that this emphasis was past prime. Now, I'm not suggesting that focusing on workers comp was the wrong tact; it is still a major expense item on many organization's bottom line and always will deserve top attention. It will be a major centerpiece this year as well. Last year, I spoke of RMIS as being a necessity because of prevalent corporate downsizing. The RMIS was indispensable in accomplishing many diverse tasks for the ``staff-challenged'' risk management department. This year, after several interesting projects, I believe differently: the real direction of RMIS should be as the strategic tool to take risk managers into the next century as information managers and resources to corporate management. I have always believed that the risk management department should be the information vortex of any organization, gathering raw data and disseminating useful information to staff and senior management. The RMIS is that key device to help risk managers be the gatekeepers of vital information on risks and exposures. Tips for participants A new visitor (or any visitor) would be well advised to observe a few tips to save a lot of headaches, confusion and hassles at the conference and afterward as you sort through all the gathered propaganda, otherwise known as marketing material. Here is a useful primer: Don't buy at RIMS! This is the most important tip I can offer. Vendors are at the conference to show their system in the most favorable light possible. Even though they experience glitches, bugs and problematic equipment, you're most likely to see a good performance in the demonstration. While RIMS is a good place to get additional information or to make a contact and pick up some literature, it is not a good place to buy. Schedule interviews beforehand. If you are in the midst of a project, RIMS is a good place to see a lot of systems. However, do not walk randomly by the booths to conduct serious analysis. Rather, set appointments with the vendors beforehand. They prefer this as well because they usually can get a suite or private room to show you the system without the distractions of the exhibit hall. Bring your experts.........and ask for theirs, too. If this is to be a serious meeting, it would be wise to bring your director of information systems, or at least some ``techie'' who understands systems architecture. Simultaneously, be sure that the vendor is providing an equivalent level of technical expertise. Many of the booth personnel are in marketing departments and may not be able to address specifically your expert's questions. Don't be swayed by booth size or glitz. Now I'm not saying to look for vendors with a plain table and some promotional material with misspelled words! But, you should not be overly impressed by the opulence of the booth or the bells and whistles of the system. Rather, ask if the functions are useful. I'd want to see a professional, unpretentious setup with courteous, yet technically competent individuals answering your questions. Don't be pressed into an immediate follow up visit. Used car sales tactics are not desirable here. This also will give you an idea of their professionalism. Now, there's nothing wrong with the vendor asking for a follow up visit or phone call. However, you will need time to digest all that you've seen and heard. Persistent and pushy sales tactics are tacky and should not be tolerated. You can have them call you in two to three weeks if that is reasonable. Copyright© 1995 Business Insurance |